Do you know the going rate for the services you provide in your area? Before you fill next year’s pipeline, research the standard market pricing, then adjust your rates accordingly so you’re not short-changing yourself. Take a look at your projects in the past year and consider how many you received any push back on pricing. If you received little to no push back, it may be time to raise your rates to capture more revenue.
The beginning of the year is a great time to adjust fees without alarming clients. It’s less arbitrary than raising fees during the middle of the year and you can defend your case by telling potential or repeat clients that you’re bringing one more year of experience, learning and expertise to the table.
With the Houzz Pro estimation software, you’ll get access to a library of pre-loaded data for materials and labor that’s based on zip code, making it easier to ensure your pricing is competitive while still helping you reach revenue targets.
“I decided I wanted my business to be all about designing and building beautiful landscapes for one homeowner at a time. One week, I got 10 leads and they were closing too quickly. I realized my pricing must have been too low. With the current prices I was quoting I realized I wouldn’t achieve my vision of only doing high-quality, unique projects. So I increased my pricing and started charging more for design work. We now make a significant profit on design as well as construction and construction supervision. Adjusting my pricing increased margins, weeded out less desirable projects, and now allows me to pick and choose the jobs I want.”
-David Hancox, Landscape Oasis